EU Tax and Savings Directives abound at the moment with the EU wrestling with trying to bring uniformity to the system. The aim being that member states will not compete with each other for investors money by offering more tax advantageous terms. Even to the point where information sharing now exists between member states taxation departments i.e. The Inland Revenue share information about you with their equivalents in other countries. The new EU Tax Savings Plan, which has been designed to stamp out tax evasion, has been scrutinised and the Jersey Financial Services Commission and they have found a loophole. In simple terms, they believe that the tax directive will not apply to private companies or discretionary trusts. Meaning that many corporates and many wealthy individuals who establish these trusts may avoid the same.
Our View
The directive is literally to prevent people not disclosing or paying tax on income they receive from deposits overseas. No doubt the wording will be reviewed to ensure that all bodies are required to comply.